According to the market researcher, the economic crisis, a rise in unemployment and a change in shopping habits has resulted in Spaniards being more careful about when and how they spend their money.
Euromonitor reveals that this in turn is also increasing the importance of private label products, which gained share over the review period, and this fact has dragged the performance of value sales.
"No big changes took place in the Spanish competitive landscape in 2013. However; L’Oréal is one brand that maintained its leadership position accounting for 25% of total value sales," say analysts.
Strong performance of private label players proves challenging for mass
Whilst Spain's key brands; Lancôme, Biotherm and Helena Rubinstein in the premium segment and Maybelline and L’Oreal Paris in the mass segment, launched new products onto the market, Euromonitor says this was not enough to compensate the strong performance of private label players.
"The effects of the economic crisis are expected to continue to be felt by consumers over the forecast period, despite Spanish GDP expected to record positive growth rates."
The expected growth rates are set to be weak and the fact that traditionally, the Spanish economy requires GDP growth rates between 2% and 3% to create employment, will affect sales. Value sales of colour cosmetics are set to decline by 4% at constant 2013 prices over the forecast period.
Not all doom and gloom
Despite being one of those worst affected countries by the Eurozone crisis, new findings from fellow market researcher, Canadean, indicates a need for Spanish consumers to occasionally treat themselves with luxury products such as fragrances.
It is by no means a thriving market, but looking past the doom and gloom, with a value Compound Annual Growth Rate (CAGR) of 0.5%, fragrances are set to be one of the five fastest-growing health & beauty sectors in Spain to 2017; ahead of skin and hair care.